Water suppliers hit with toughest ever regulation in a bid to lower bills

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The water regulator has hit suppliers with the industry’s toughest price control regime since privatisation in a bid to force household bills lower amid the rumbling threat of renationalisation.

Ofwat will shave at least £15 to £25 a year from the average water bill in the first half of the next decade by tightening the screws on water companies, whose revenues rely on the regulator’s approval.

Ofwat’s outgoing chief executive, Cathryn Ross, said the blueprint would push water companies to deliver more for customers through to 2025.

“We’ve said many times already that this will be a tough price review for companies. We will cut the financing costs they can recover from customers and, with this...